News Posts

Today investors in certain ILS structures are cosily told about the risks that they will assume – non-correlated to the capital markets, well selected, well modelled and part of a well-diversified portfolio. Whereas it is doubtlessly explained that events can and...

Solidum has again profited from trading in distressed Cat Bonds, this time it was the Multicat Mexico C tranche. Through superior and timelier knowledge Solidum was able to purchase a few million of the notes at 20 cents for them to increase in value to close to 50...

Casting one’s mind back to the heady premium days of post Katrina / Wilma, life for the reinsurance market, including the nascent ILS market, was good. It was what in the industry is called a ‘hard market’, a market where terms are hard i.e. high premiums combined...

Cat bond market as a proxy for the general ILS market: While the reinsurance (RI) market is generally transacting privately and objective market pricing data is hence not readily available (the global reinsurance brokers collect renewal information through their...

Northern Rock started of life in the mid-1800s as a UK building society, providing savings and mortgages. As with many building societies in the 1990s it became a bank. It continued to provide mortgages for its customers financing itself in the capital markets. In...

Prior to 2008 the standard Cat Bond collateral structure was using a total return swap (“TRS”) with the structuring investment bank. The investment bank invested the collateral into securities of their choice, subject to certain constraints, and swapped the interest...

The-Avalon-Re-Story.pdf